10 Hot Growth Stocks to Invest in According to Analysts

3. Robinhood Markets, Inc. (NASDAQ:HOOD)

% Gain Over 6-Month Period: ~136.7%

Average Upside Potential: ~65%

Number of Hedge Fund Holders: 79

Robinhood Markets, Inc. (NASDAQ:HOOD) operates a financial services platform. Cantor Fitzgerald initiated coverage of the company’s stock with an “Overweight” rating and a price objective of $69. As per the firm, Robinhood Markets, Inc. (NASDAQ:HOOD) happens to be one of the most popular financial services platforms, mainly among younger generations. The company now possesses a handful of growth vectors that are expected to support through-cycle growth and market share gains, says the analyst.

Furthermore, Cantor Fitzgerald opines that the market has been underestimating Robinhood Markets, Inc. (NASDAQ:HOOD)’s potential within both equities and crypto. The firm expects platform expansion to drive upside surprises to profitability over the medium-term. Elsewhere, BofA Securities remains optimistic about the company, and maintained a “Buy” rating and a price objective of $65.00. The analyst highlighted numerous reasons for an optimistic outlook on Robinhood Markets, Inc. (NASDAQ:HOOD), lauding the platform’s higher retail engagement and strong organic growth. According to the analyst, the company has a significant growth potential in the self-directed retail and cryptocurrency sectors.

Artisan Partners, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:

“During the quarter, we initiated new GardenSM positions in US Foods, Pure Storage and Robinhood Markets, Inc. (NASDAQ:HOOD). Robinhood has emerged as the go-to-trading platform for millennials, boasting approximately 25 million accounts (versus Charles Schwab’s 34 million). The company’s user base skews younger, with deposits growing significantly faster than the broader industry due to several drivers, including the rise of self-directed trading, the generational wealth transfer to millennials and increasing market share. As Robinhood’s customer base matures and accumulates wealth, we believe the company is well positioned to expand its product offerings to meet evolving financial needs. Furthermore, management’s focus on profitable growth and a 90% fixed cost structure suggests meaningful margin expansion potential.”